Business

Shortage of medicines likely to exacerbate from Paracetamol to life-saving drugs: SLCPI

Published

4 years ago

2022/03/3

From left: Sri Lanka Chamber of the Pharmaceutical Industry Treasurer Dinesh Athapaththu, Vice President Azam Jaward, Senior Vice President M. Prathaban, President Sanjiva Wijesekera, Immediate Past President Kasturi Chellaraja Wilson, Council Members Adrian Basnayake and Jude Fernando

by Sanath Nanayakkare

The current shortage of Paracetamol and Panadol in the market could aggravate to a situation where life-saving drugs would not be available to patients in a few months, Sri Lanka Chamber of the Pharmaceutical Industry (SLCPI) warned yesterday.

“This could happen if the US dollar shortage is not properly addressed and a realistic pricing formula for imported medicines is not introduced forthwith by the authorities,” they said.

“At present, the shortage of medicines is about 5%. One might say it is small or unimportant as to be not worth considering. But in 4-6 weeks from now it could increase to about 25%,” they warned.

SLCPI made these comments at a press briefing held at Taj Samudra Colombo.

“We have a fear. We want to update the general public of Sri Lanka on the current situation with regard to medicine imports because what is on the horizons is not good. Delays at the National Medicines Regulatory Authority (NMRA), the unrealistic price mechanism and the dollar crisis are biting our industry. The dollar crisis is common to every industry, but we also have a serious problem as medicine importers. Until last month, we didn’t have a major crisis. But this month and in the last two weeks, the banks have been advised to prioritise allocation of dollars for fuel purchases and it appears that medicine imports have received de-prioritisation on the list of essential imports. If this trend continues, we will have a serious problem in even importing life-saving drugs. At the moment, it is under control. We have to inform the general public of the evolving situation,” Azam Jaward, Vice President, SLCPI said.

“The last price increase on drugs was allowed in August 2021 when the USD was trading at Rs. 194. Now the dollar has incresed to Rs. 203 which is the ‘published rate’ by the Central Bank of Sri Lanka, but unfortunately there is no mechanism to address the current disparity in the exchange rate. We need asustainable pricing mechanism which addresses the exchange rate, freight rate, current global prices, inflation, cost of fuel etc,” they said.

“Our industry is quite energy-driven. Some drugs need to be stored in temperatures between 2- 8 Celsius. Some need -20 Celsius. If we don’t have electricity, we face big issues. We have to run generators and multiple storage facilities. At present, we are managing it. But all of this depends on the availability of fuel. To run a generator for 7-8 hours a day, we need 2,000 litres of diesel per day,” they said.

“The NMRA charges dollars from us to register a product. They adjust it monthly based on the change of the exchange rate. The government has a fee- charging mechanism based on the US dollar. Then why don’t they do the same for drugs that are imported for sale? These are two conflicting policies,” they argued.

“We don’t need a price increase. Just amend the prices relative to the value of the dollar. For this we need an intervention by the Central Bank. If we can obtain a monthly allocation of USD 25-30 million per month, we believe that we can supply essential drugs to the general public without any disruption,” they said.

“We have had discussions with the authorities on these matters and we have submitted these facts for them to consider, but we have not yet achieved any results other than discussions.There is undue delay at the NMRA in granting the re-registration of products which have been available in the market for a considerable period, and new product registrations. With regulatory fees increasing by an average of 11-fold, the service of the regulator is below expectation,” they said.

Some excerpts of the SLCPI press statement are reproduced below.

“Over 85% of pharmaceutical products are imported, and these imports are paid for by US dollars. The current US dollar shortage in the country has increased the difficulty of importing essential medicines. In addition to this, companies have been unable to pay their dues. As a result, suppliers are no longer interested in supplying to Sri Lanka.”

“The situation is further worsened as banks find it difficult to honour the Letters of Credit (LCs) that are opened to import drugs. Banks delay opening the LCs until there are sufficient dollars. This has resulted in shipments being scheduled according to the availability of dollars and not according to the needs of the patients.”

acceptable pricing mechanism as well as immediately ironing out NMRA red tape for registrations are prerequisites for resolving this crisis.”

SLCPI serves as the representative of over 60 members who account for more than 80% of the private pharmaceutical industry, spanning manufacturers, importers, distributors and retailers. These stakeholders supply Sri Lankan patients with 1,200 molecules from 435 manufacturers from across the world.

SLCPI told The Island that banks ask them to purchase dollars from exporters to finance their medicine imports, but when they reach exporters to buy their dollars, they ask Rs. 245 per US dollar which is the price in the gray market. “So, how can we buy dollars from them and import and sell at controlled prices?” they said.

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Business

Customs easing Colombo Port congestion amid IMF push

Published

6 hours ago

2026/04/11

Thilina Walpola

Officials at the high-level discussions centred on container clearance delays.

In a significant breakthrough for Sri Lanka’s trade and logistics sector, authorities have agreed to halve the number of containers subjected to Customs examination at the Colombo Port—an intervention expected to dramatically reduce congestion and costly delays that have plagued importers and exporters for months.

The decision emerged following high-level discussions between the Ceylon United Business Alliance (CUBA), senior Customs officials, and representatives from the Finance and Industries Ministries.

The business delegation, led by Ms. Tania Abeysundara, included representatives of the Customs House Agents and Traders Association, among them Ghouse Arfin, Jawfer, and Mohamed Niyas. They met with Deputy Minister of Finance Prof. Anil Jayantha and Deputy Minister of Industries Chathuranga Abeysinghe, alongside top Customs officials.

Sri Lanka Customs Director General Seevali Arukgoda, addressing the concerns of the trade, assured that container examination selectivity would be reduced in line with International Monetary Fund (IMF) recommendations.

At present, nearly 800 containers—amounting to around 40 percent of daily throughput—are flagged for physical examination at key yards, including Grayline 1, Grayline 2, and Rank Container Terminal. This high rate has been widely blamed for severe bottlenecks within the Colombo Port and associated examination yards.

However, under the revised framework, the number of containers selected for inspection will be reduced to approximately 400 per day, bringing the examination rate down to 20 percent.

Senior Customs officials, including Additional Director General (Revenue and Services) S. Loganathan, acknowledged that the current levels of inspections had contributed to mounting congestion, extended clearance times, and increased costs for traders.

Industry stakeholders have long argued that excessive physical inspections—often duplicative and risk-averse—undermine Sri Lanka’s competitiveness as a regional maritime hub.

“This is a vital step towards improving trade facilitation and reducing the cost of doing business in Sri Lanka, the Alliance team told The Island Financial Review.

By Ifham Nizam

Business

SL’s economic outlook for 2026 being shaped by M-E conflict

Published

6 hours ago

2026/04/11

Thilina Walpola

The top table at the ADB media briefing

Sri Lanka’s economic growth is expected to moderate to 4.0% in 2026 and climb to 4.2% in 2027, following two consecutive years of strong 5.0% growth.

This forecast is based on an early stabilization scenario for the Middle East conflict, according to the Asian Development Outlook (ADO) April 2026, Asian Development Bank’s (ADB) flagship economic publication. Sri Lanka’s recovery held firm in 2025 despite the late-year disruption of Cyclone Ditwah. Private consumption surged amid low inflation and easing interest rates, while remittances hit a record high, as did the primary budget surplus. The current account posted a third consecutive surplus, and official reserves climbed to their strongest level in years.

The outlook for 2026 is increasingly shaped by the conflict in the Middle East, even as post-Ditwah reconstruction spending provides some support for growth. Private consumption will remain the main growth driver, though higher inflation will temper household spending power, and private investment is expected to recover only gradually amid heightened uncertainty.

Higher energy costs, potentially weaker remittance inflows, and disruptions to trade and tourism will weigh on household incomes and external buffers and drag on economic growth. Inflation is projected to accelerate sharply to 5.2% in 2026, driven largely by the Middle East conflict.

“Sri Lanka has come a long way since the recent economic crisis, and its economic performance over the last two years is a major achievement,” said ADB Country Director for Sri Lanka Shannon Cowlin. “However, the risks ahead are real and significant. This is not the moment to ease up on reforms. Fiscal discipline must be maintained and resilience must be strengthened against the external shocks that will keep testing this economy. At the same time, scaling up and executing public investment will be essential to sustaining the recovery.”

ADB is a leading multilateral development bank supporting sustainable, inclusive, and resilient growth across Asia and the Pacific. Working with its members and partners to solve complex challenges together, ADB harnesses innovative financial tools and strategic partnerships to transform lives, build quality infrastructure, and safeguard our planet. Founded in 1966, ADB is owned by 69 members—50 from the region.(ADB)

Business

Hameedia unveils “Threads of Culture”

Published

6 hours ago

2026/04/11

Thilina Walpola

This Avurudu season, Hameedia introduces its latest campaign, “Threads of Culture,” celebrating the traditions that connect generations while embracing a more conscious and forward-thinking approach to fashion.

Rooted in the spirit of Sinhala and Hindu New Year, the campaign highlights the importance of preserving culture while evolving with modern values. This year, Hameedia places a strong emphasis on ethical and sustainable fashion, encouraging customers to move away from fast and imitation fashion towards quality, authenticity, and responsible choices.

As part of this shift, Hameedia presents a refreshed festive collection crafted using lightweight cotton and linen fabrics, designed specifically for Sri Lanka’s climate. The collection focuses on breathability, comfort, and timeless style, offering customers clothing that is both practical and refined for the season.

Commenting on the campaign, Fouzul Hameed, Managing Director of Hameedia, stated, “Avurudu is a time of renewal, reflection, and meaningful connection. With ‘Threads of Culture,’ we wanted to go beyond celebration and inspire a shift in mindset, encouraging Sri Lankans to choose authenticity over imitation, quality over quantity, and responsibility over convenience. As a homegrown brand, we take pride in upholding craftsmanship and ethical practices, and we believe fashion should not only look good but also do good.”

Marking a key milestone in its expansion, Hameedia is also set to open its newest outlet in Galle, further strengthening its presence across the island and making its signature craftsmanship more accessible to customers in the southern region.